If the price is higher than the equilibrium price, then –

Correct option is B

The correct answer is (B) Quantity supplied is greater than quantity demanded

Explanation:
• When the market price is set above the equilibrium level, it creates a 'surplus'.
• At this high price, producers are willing and able to supply more goods to the market (Law of Supply).
• However, at that same high price, consumers are less willing to buy the product (Law of Demand).
• Consequently, the Quantity Supplied ($Q_s$) exceeds the Quantity Demanded ($Q_d$).
• To clear the excess stock, sellers will eventually lower their prices, pushing the market back toward equilibrium.

Information Booster:
• This situation is common when the government sets a 'Price Floor' (like a Minimum Support Price) above the natural equilibrium to protect producers.

Additional Knowledge:
• Option A: This occurs when the price is *below* equilibrium, creating a 'shortage'.
• Option C: Price increases when there is a shortage ($Q_d > Q_s$).
• Option D: While the price *will* eventually decrease (as a market reaction), the immediate structural condition of having a price above equilibrium is described by the imbalance in quantity (Option B).